India's Union Communications Minister Jyotiraditya Scindia announced that the country will administratively allocate spectrum for satellite communication, as outlined in the Telecommunications Act of 2023. This decision is a significant blow to Reliance Jio, which has been advocating for an auction process, while favoring companies like Elon Musk's Starlink and Amazon's Kuiper.
Scindia emphasized that while the spectrum will be allocated administratively, it will not be free of cost, with the pricing formula to be determined by the Telecom Regulatory Authority of India (TRAI). He stated, 'Satellite spectrum across the world is allocated administratively. India is not doing anything different from the rest of the world.'
This announcement has intensified competition in the telecom sector, pitting Reliance Jio against major players like Starlink. Jio previously challenged the administrative allocation notion, pushing for an auction process, which Musk criticized as unprecedented.
Sunil Bharti Mittal, chairperson of Bharti Enterprises, echoed the call for satellite companies targeting urban customers to comply with the same regulatory framework as traditional telecom operators. He stated that these companies must purchase spectrum and adhere to licensing conditions, marking a shift from previous stances taken by the Bharti group.
Despite this shift, Airtel clarified that there has been no change in its position regarding satellite services, emphasizing that satellite operators must follow the regular licensing process to compete in urban markets. This development highlights ongoing tensions in the telecom sector, as traditional operators and satellite companies navigate the evolving landscape of internet connectivity in India.